Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300 lbs. per month. The item can be purchased from either Yeast & Brewery Company, or Crust n Krumbs Company. Their price lists are shown in the table. Ordering cost is $25.23, and annual holding cost per unit is $13.95 (fixed amount), these are internal costs to Bimbo. Inventory Model used annual demand for calculation.

Yeast & Brewery Company	Crust n Krumbs Company
Quantity	Unit Price	Quantity	Unit Price
1-399	$16.91	1-499	$16.23
400-899	$16.23	500-999	$15.91
900+	$15.69	1000+	$15.69

What is the Economic Order Quantity (EOQ) if price is not a consideration, round to whole number? Units [ Select ] ["253", "238", "255", "242", "267"]

Which supplier, based on all options with regard to discounts, should be used? [ Select ] ["Crust n Krumbs", "Don't know", "Yeast & Brewery"]

What is the optimal order quantity? [ Select ] ["300", "400", "238", "900", "500"]

What is the total annual cost of ordering, inventory holding, and purchasing the strategic ingredient, round to whole number? [ Select ] ["$241,668", "$252,133", "$234,714", "$251,479", "$242,538"]

If the quality of Crust n Krumbs turns out to be superior, which vendor would you select? [ Select ] ["Yeast & Brewery", "Crust n Krumbs", "Don't know"]

What would be the extra cost for the superior quality in choosing Crust n Krumbs, round to whole number? [ Select ] ["$554", "$754", "$354", "$254", "$654"]

The % cost increase in choosing Crust n Krumbs over Yeast & Brewery? By compared to the total cost (ordering, holding & purchasing) from the two suppliers, then calculate the % on the premium paid for the superior quality. [ Select ] ["0.34%", "0.29%", "0.26%", "0.36%", "0.16%"]

Ashlee learned that the actual usage has gone up to 3,000 lbs. per month, what would be the incremental cost annually in choosing Crust n Krumbs. By compared to the total cost (ordering, holding & purchasing) from the two suppliers, based on 3,000 lbs. per month demand. [ Select ] ["$597", "$669", "$630", "$930", "$730"]